UPDATE 2-Hansen Medical to restate results to correct errors

* Errors regarding timing of revenue recognition

* Says review is ongoing; impact on operations unknown

* Shares fall as much as 14.6 percent (Adds details, analyst comments)

By Jennifer Robin Raj

BANGALORE, Oct 19 (Reuters) - Medical robotics company Hansen Medical Inc (HNSN.O) said it plans to restate prior financial results to correct errors regarding the timing of revenue recognition on the sale of some of its Sensei Robotic Catheter Systems, sending shares down as much as 14 percent.

In a regulatory filing with the U.S. Securities and Exchange Commission, the company said its audit committee began an investigation following a whistleblower report received in August that alleged of improper revenue recognition in the quarter ended Dec. 31, 2008.

The investigation found there were instances where revenue recognition occurred prior to the completion of all its obligations to customers, the company said.

"The investigation may result in a determination that one or more distributors were not independently capable of installing systems at the time we first recognized revenue of systems purchased by such distributor(s)," the company said in a filing.

Hansen's Sensei robotic catheter system helps to place mapping catheters within the heart easily, during complex cardiac arrhythmia procedures.